Bloomberg senior ETF analyst Eric Balchunas said that tokenized shares are probably not a major threat to listed funds, even if the SEC, a change of rule, regards that shares of companies such as Tesla and Nvidia could bring to crypto exchanges.
Balchunas framed the potential change as a more convenience for investors of digital assets than a disruption of traditional markets. He compared how ETF’s retail investors gave exposure to cryptocurrencies in a well -known wrapper.
He added that tokenized shares would give Crypto-Native traders access to conventional shares in their preferred format, but it is unlikely that the ETF market share will be eroded in a meaningful way.
Balchunas wrote on social media:
“This is simply allowing Crypto -Insbornlingen to buy regular personal investments in a format that they prefer. Only this side of the comparison has much more money, so it probably won’t dent much of the ETF market share.”
The rumor shift emphasizes how American supervisors are starting to test the intersection of Wall Street and Blockchain technology.
Tokenized shares would represent traditional shares on the chain, which offer near-instructive settlement, fractional trade and global accessibility, has long been promoted as the benefits of blockchain-based markets.
Worldwide, Tokenization has gained strength as banks and financial infrastructure providers pilot blockchain-based trade and settlement systems.
UBS and JPMorgan have launched tokenized bond and fund offering, while Hong Kong and Singapore have introduced regulatory sandboxes to test tokenized securities platforms. In the meantime, Deutsche Börse has made considerable progress in Europe in the issue and settlement of digital bonds using DLT.
Proponents claim that tokenization could ultimately modernize capital markets by lowering intermediaries, saving costs and opening access to a wider pole of investors. However, critics have asked persistent questions about custody, compliance and investor protection.
In the US, supervisors have traditionally been careful, often referring to the need to ensure that new technologies do not undermine financial stability or market integrity.
If approved, tokenized shares on crypto fairs would represent one of the most important steps of the SEC to bridge traditional effects with blockchain-based trading locations. However, the scope and structure of such a program remain unclear and the committee has not yet issued a formal statement.
